Question
The gross income of Abelina Bennett is $215 per week. Her deductions are: $15.16 for FICA tax, $29.33 for income tax, 2% for state tax, 1% for city tax, and 3% for retirement fund. What is her net income?
The gross income of Abelina Bennett is
15.16 for FICA tax, $29.33 for income tax, 2% for state tax, 1% for city tax, and 3% for
The Correct Answer and Explanation is:
Correct Answer:
Abelina Bennett’s net income is $158.21 per week.
Explanation
To calculate Abelina Bennett’s net income, we must subtract all her deductions from her gross income. Her gross income is $215 per week.
Step 1: Fixed Deductions
- FICA tax = $15.16
- Income tax = $29.33
Step 2: Percentage-based Deductions
These deductions are percentages of the gross income ($215):
- State tax (2%) = 0.02 × 215 = $4.30
- City tax (1%) = 0.01 × 215 = $2.15
- Retirement fund (3%) = 0.03 × 215 = $6.45
Step 3: Add Total Deductions
Now add all the deductions together:
- $15.16 (FICA tax)
- $29.33 (income tax)
- $4.30 (state tax)
- $2.15 (city tax)
- $6.45 (retirement fund)
Total deductions = $15.16 + $29.33 + $4.30 + $2.15 + $6.45 = $57.39
Step 4: Subtract Deductions from Gross Income
- Net income = Gross income − Total deductions
- Net income = $215 − $57.39 = $157.61
Correction: It appears there was a typo earlier in the final total.
Let’s recalculate precisely:
$15.16 + $29.33 = $44.49
$44.49 + $4.30 = $48.79
$48.79 + $2.15 = $50.94
$50.94 + $6.45 = $57.39
$215.00 − $57.39 = $157.61
Final Answer: $157.61
This is the net income, which is the amount Abelina takes home after all taxes and deductions. Net income is important because it reflects what is actually available for living expenses, savings, and spending.
